Debt, Earnings, and Cost Information Disclosure for Education Act; DECIDE Act
Summary
The DECIDE Act aims to improve transparency and accountability for federal student loan borrowers. It mandates the Secretary of Education to expand and annually update the College Scorecard with program-level data, including median earnings, debt amounts, default rates, and repayment rates. This data will be available for each certificate, degree, graduate, and professional program where students receive federal aid.
Expected Effects
The Act will likely lead to increased awareness among prospective students regarding the financial implications of their education choices. This could influence enrollment decisions and potentially reduce student loan defaults. It also puts pressure on institutions to improve program outcomes.
Potential Benefits
- Increased Transparency: Provides students with comprehensive data on program costs, earnings, and debt.
- Informed Decision-Making: Empowers students to make better choices about their education and career paths.
- Accountability for Institutions: Holds colleges and universities accountable for the outcomes of their programs.
- Potential Reduction in Student Loan Defaults: By providing better information, students may be less likely to default on their loans.
- Improved Program Quality: Institutions may be incentivized to improve program quality to attract students and improve outcomes.
Potential Disadvantages
- Potential for Misinterpretation: Data may be misinterpreted or misused by students or institutions.
- Increased Administrative Burden: Expanding and updating the College Scorecard may create an additional burden for the Department of Education.
- Limited Scope: The Act focuses primarily on federal student loans and may not address other forms of debt.
- Data Lag: The use of data from 10 years prior may not accurately reflect current market conditions.
- Unintended Consequences: Institutions might focus on short-term gains rather than long-term student success.
Constitutional Alignment
The DECIDE Act appears to align with the Constitution's general welfare clause, as it aims to improve the financial well-being of students by providing them with better information. The Act does not appear to infringe upon any specific constitutional rights or limitations. Congress's power to legislate on matters related to education and interstate commerce provides a basis for this type of legislation.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).